Finance
A property appraises at $500,000 and the buyer makes a 10% down payment. What is the loan-to-value (LTV) ratio?
A10%
B80%
C90%✓ Correct
D95%
Explanation
LTV = Loan Amount ÷ Appraised Value. With a 10% down payment ($50,000), the loan is $450,000. $450,000 ÷ $500,000 = 90% LTV. Higher LTV ratios generally indicate more lender risk.
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